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LED Market Development

Jul 28, 2017

ED lighting penetration rate, the industry into a "spiral rise", Chinese LED products in the world market occupies a more important position. This year, the "price war" between enterprises is still fierce, profits are increasingly weak, the entire LED lighting industry will enter the era of meager profit.

2015 led on the Middle midstream market competition, product oversupply, LED chip prices bottom. In the first half of 2016, benefit from outdoor, indoor small spacing LED display (LED advertising Kanban, LED display) increased demand, LED chip prices stabilized rebound, the market has improved. Due to the upstream led chip prices, only a few manufacturers of LED chip price increases, so in the short term led packaging prices will also maintain stability. 

Long Tatsu Electronics chairman Su Sheng pointed out that although the Crystal electricity, branch sharp and other LED chip factory production to cope with the market oversupply situation, but other manufacturers such as the three photoelectric and so did not follow up, this year led chip market is still oversupply. Billion Photoelectron chairman Ye Yinfe said that the LED chip price boom should have bottomed out in the 4th quarter of last year. At the moment, prices have stabilized, and even some of the prices are too low to have risen, although the overall rise is difficult, but at least not worse than last year. 

Crystal Yuan Optoelectronics in May issued a part of the Blu-ray LED products to increase the news, the rise of up to 15%. But the market is still oversupply. In addition, the LED packaging market prices remain stable this year, forecast to climb to 9.3 billion U.S. dollars in 2016, an annual increase of 5%. 

With the increasingly fierce competition in the industry, crystal power, billion light and other manufacturers have turned to the view of the car led, UV led, Invisible led, IR led, such as high margin and higher unit price of the new market. In the white light led application market, is the large-scale manufacturers win. 

In the first quarter of 2016, China's exports of lighting products were $8.5 billion, down 14.8% from the same period last year, which has not been the case for years. 

On the one hand, the lighting market led penetration rate is still accelerating, the price drop has narrowed, Shangzhao, home market performance outstanding. On the other hand, with the small spacing technology mature and price into the market acceptance range, LED display market growth is gratifying. In addition, car lighting, agricultural lighting market started significantly faster than the previous year. Although the industry as a whole continues to upward, but for the first half of the situation, many people in the industry said the situation is grim, feel pressure. 

Currently LED lighting is in the penetration rate of gold 3 years of rapid ascension. Because of the short process of LED lighting and technology is relatively easy to master, China in the field of LED lighting in the subdivision has a cost advantage, will become the global LED lighting major production base. The current LED enterprises only to continuously improve their own quality, the courage to innovate and open the wider lighting market. Through the survival of the fittest in the market competition, the final real precipitation is still based on manufacturing industry, thus promoting and promoting the industry's progress. 

According to industry analysts, the 2016 lighting industry as a whole will enter the "spiral rise" period, the overall demand is a steady rise in the trend, but the growth rate is relatively flat, will not appear in the previous years of the outbreak of growth. As market demand is gradually stimulated, market competition is becoming more brutal. This year, the "price war" between enterprises is still fierce, profits are increasingly weak, the entire LED lighting industry will enter the era of meager profit. 

Industry in recent years after the blowout-type rapid growth, overcapacity, price wars and other contradictions increasingly sharp, coupled with the market demand for cold, industry forecasts 2016 LED industry market scale growth will slow. And with the rapid development of the internet and things to become increasingly popular, especially led more civilian, and began to enter millions of households, smart city and smart home growth makes intelligent lighting in the daily life of the application more and more widely, intelligent lighting for LED lighting enterprises to bring new opportunities.

The future development of intelligent lighting is an irresistible trend, data show that the 2016 domestic LED lighting application market size will reach 82.3 billion yuan, China is expected to become the world's top 5 LED lighting consumer. Gooee vice president of the lighting company, Johncouch, said that by 2019 the smart lighting system using IoT technology would bring about $550 billion in software and services to the industry, while hardware sales would yield only $50 billion. Visible 2016 years or even in the next few years, the field of intelligent lighting will be a red sea. 

Many traditional lighting equipment manufacturers such as Philips Lighting, OSRAM, etc. are actively transforming into an integrated intelligent lighting solutions provider, Huawei and OP lighting across the border to create a smart life; Schneider, GE Lighting and other industrial automation, automation control, energy management as the focus of the business, in the industrial Internet, networking, large data waves, but also from their own advantages to the field of intelligent lighting infiltration. 

"Intelligent lighting, as a subsystem of intelligent home, is one of the new directions in the future development of lighting industry." "General Technology chairman Pang Guiwei said. Through Cross-border interaction to achieve the combination of lighting and light source, as well as the combination of hardware and mobile networks, intelligent lighting is becoming a new outlet for industry development. 

May 16 The State Council executive meeting to discuss the adoption of "National basic Public Service System" Twelve-Five plan, research and determine the promotion of LED lighting and other energy-saving household appliances products consumption policy measures, proposed to arrange 2.2 billion yuan to support the promotion of energy-saving lamps and LED lighting. At present, the domestic led industry has a good research foundation in technology, and the gap is gradually shrinking, the initial capital expenditure and labor cost are lower; the effect of industrial cluster has been formed. 

In addition, from the macroeconomic situation observation is not difficult to find that China's economic downward pressure still exists, LED lighting industry has a more obvious structural overcapacity problem, but in the past the government has been vigorously support, LED lighting enterprises have experienced a more "pleasant" growth stage. 

And with the introduction of the domestic market, Osram in 2015 will hold 13.47% of the shares of Foshan lighting sold to Guang Sheng Group; Panasonic lighting in Japan in 2014, respectively shut down in China's Shanghai lamps Factory and Hangzhou factory, the overall contraction of lighting business, foreign markets are flagging, the future lighting industry in China will be more and more of the company's share is becoming consensus Last year, Sylvania, a music acquisition, believes that more Chinese lighting companies will be in the future to the world with products, brands or capital, China's lighting products in the global market share gradually expanded. 

2016 is the start of the "Thirteen-Five-year Plan", energy saving and emission reduction will still be the most important, in the energy-saving emission reduction can play a significant role in LED lighting products will be the government and the market attention, to promote the further development of LED lighting industry. But the illumination industry internal structure adjustment and so on many factors influence, faces the complex situation. 

Overall, the overall trend of 2016 is still the gradual reduction of traditional light products, and LED lighting products are gradually increasing, this trend has not changed, but LED lighting products tend to increase steadily. At present, China's lighting industry due to excessive number of enterprises, overcapacity, resulting in oversupply, the future trend is still the integration of the main, on the one hand through mergers and reorganization, bigger and stronger a group of enterprises. On the other hand will gradually eliminate a group of uncompetitive enterprises, making China's lighting industry more healthy and more competitive.